A client asked me do realtors sell many homes doing Public Open Houses or do they get more buyer clients?

Asked by Robert Paul, Bedford, NY Thu Jul 22, 2010

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7
Carl Ben Wit…, Agent, Upper Montclair, NJ
Thu Jul 22, 2010
As you can see, Open Houses produce results. Beware of agents who speak against them. You want all your tools for marketing a home, not just some of them. It is the total effort that counts. Do not short change your seller or yourself by avoiding "a few buyers" and all those people in Stacy's answer below. Why wouldn't you want all those people, too? Of course, agents meet buyers at Open Houses. Of course, agents can show other houses to those the meet at an Open House. Of course, neighbors come and look. Of course, agents come and look. That is what you want.
2 votes
Scott Godzyk, Agent, Manchester, NH
Thu Jul 22, 2010
It really depends what type of home and in what type of area you are in. For new construction, open houses are a must. For existing homes in not in an area that attracts a large drive by audience, open houses benefit the agents by getting potential leads than buyer walking in to buy that house.

Anyone interested in a specific property, would prefer a private showing where they can take their time, look in the closets and not be rushed or bothers by other potential buyers.

In this market where the banks are not giving out mortgage approvals in any great numbers, Open houses are a great way to show your house to the neighbors or people out looking for soemthing to do as they will be buying in a few years and want to see what is out there. Those are the 2 most common responses when interacting with people from my last open house.

So in my opinion for the average house, open houses to the public are not a great benefit to the seller. It nets the agent a few potential leads for the future, but as far a a buyer coming off the street and asking to write and offer right then and there in this economy, the odds are better to win powerball.

If you have new construction, multiple units, located in a tourist area or vacation area, open houses are a must.
Web Reference:  http://www.ScottSellsNH.com
1 vote
Thomas Tolbe…, Agent, Savannah, GA
Thu Jul 22, 2010
Robert, I think it's specific to individual markets but in my market few homes are sold as a direct result of open houses. I believe that agent open house are much more effective. You can ask other agents with listings in the neighborhood if they would like to participate and have a progressive lunch or offer drawings for prizes. Most agents may attend for the free lunch or prizes but at least they have previewed the home and will remember it if they have a buyer it may be right for!
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Jul 22, 2010
Robert i forgot to add a link to my blog which i recently updated.

Please check it out and add your oppinion.

"Are open houses worth it? An eye opening look at the opne house.

http://www.trulia.com/blog/scott_godzyk/2010/07/are_open_hou…
0 votes
Stacy Carter, Agent, Roswell, GA
Thu Jul 22, 2010
That question is very market specific and even neighborhood specific within a given market. There are only a few types of people who attend Open Houses. 1.) The neighbors 2.) Real Estate enthusiasts 3.) Prospects just starting their search 4.) Buyers who know they want to live in the neighborhood - (and they may or may not have an agent)

So, only 1 of the 4 are serious buyers and you have to hope they're available on that particualr Sunday. If not, and they are truly serious about living in the neighborhood, they will call their agent (or the listing agent) to schedule a showing.

Open Houses can advertise you, the agent. And if you focus in a particular neighborhood, you'll look like the hardest working agent with Open House signs out every weekend.

I hope this helps!

Stacy Carter
Associate Broker
Better Homes & Gardens Metro Brokers
678-641-6631
0 votes
Carl Ben Wit…, Agent, Upper Montclair, NJ
Thu Jul 22, 2010
Studies show about 15% of Open Houses produce a buyer at an Open House for that house. Yes, would-be sellers go to open houses to see how agents work and to "interview" for an agent. Some visitors are agents previewing house. Some are neighbors who have a friend or relative who may buy it. But unknown, the number of buyers who buy the house from having heard from a friend about a house that was seen at an Open House and then followed up on by the buyer. So, more people who see it, more likely a better outcome for seller. The opposite is also true. Fewer people who see it, less than ideal result. Example, a FSBO with sign and phone number. Buyer will have to come from the chance that a buyer will drive buy and notice it. Realtors market houses and owners sell them. Marketing is sophisticated, creative, thorough, pervasive, personal, individual, and persistant. Fascinating, isn't it?
0 votes
Jeffrey Halp…, Agent, Hopatcong, NJ
Thu Jul 22, 2010
Today's Open Houses produce far different buyers than before.
Without a doubt, very rarely is a home sold at an open house, and there are fewer attendees at open houses today that in the past, but those attendees are a better quality and more interested buyer. especially if they came from a web posting vs a passer-by. If they come off the web, they have seen the photos, know the price. and read all the pertinent info thereofre, they have a much greater interest in the property if they also show up. Those are the key prospects for that property. If they are the passer-by, they're nosey neighbors.
But as you know, there is only one buyer for the house and the more exposure to bring that one buyer can only help.
So the simple answer is you get more buyer clients because only one of them is going to buy anyway.
0 votes
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